Nation Companies

  The AP is reporting that Facebook is now worth more than Walmart at $382 Billion dollars. To put this into context, both Facebook and Walmart have a net worth greater than the GDP of Finland, Ireland and Portugal. Facebook is now only $30 Billion away from surpassing the GDP of Denmark. 

What has Facebook done to increase its stock value? Have they produced some new technology? Have they gone on a hiring or layoff spree? Have the generated new sources of revenue? The answer to all is “no.” Neither Facebook nor Wamart have done anything significant to raise its net worth. It’s just the way the market works these days. Yet, according to market analysts, nothing is over valued at all. Companies can produce nothing, or create nothing, and their value (the price of stock x the number of shares) goes up “just because.” 

It does leave one thing to think about however: how can companies make more than the net worth of stable, powerful Eurozone countries and not have political power and influence that’s on par with other sovereign nation-states? I suspect the answer is that with the GDP of Denmark, comes power. 

This entry was posted in Markets, Political Economy. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s